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v3.24.3

Borrowings (Tables) | 9 Months Ended
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Sep. 30, 2024
Debt Disclosure [Abstract] |
Schedule of Debt | The following table summarizes our borrowings at September 30, 2024 and December 31, 2023.
|  | September 30, 2024 |  | December 31, 2023
(Dollars in thousands) |  | Short-Term |  | Long-Term |  | Total |  | Short-Term |  | Long-Term |  | Total
Unsecured borrowings: |  |  |  |  |  |  |  |  |  |  |  |
Unsecured debt (fixed-rate) |  | $ | — |  |  | $ | 994,614 |  |  | $ | 994,614 |  |  | $ | — |  |  | $ | 992,200 |  |  | $ | 992,200 |
Total unsecured borrowings |  | — |  |  | 994,614 |  |  | 994,614 |  |  | — |  |  | 992,200 |  |  | 992,200 |
Secured borrowings: |  |  |  |  |  |  |  |  |  |  |  |
Private Education Loan term securitizations: |  |  |  |  |  |  |  |  |  |  |  |
Fixed-rate |  | — |  |  | 4,204,755 |  |  | 4,204,755 |  |  | — |  |  | 3,585,254 |  |  | 3,585,254 |
Variable-rate |  | — |  |  | 837,158 |  |  | 837,158 |  |  | — |  |  | 650,058 |  |  | 650,058 |
Total Private Education Loan term securitizations |  | — |  |  | 5,041,913 |  |  | 5,041,913 |  |  | — |  |  | 4,235,312 |  |  | 4,235,312 |
Secured Borrowing Facility |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total secured borrowings |  | — |  |  | 5,041,913 |  |  | 5,041,913 |  |  | — |  |  | 4,235,312 |  |  | 4,235,312 |
Total |  | $ | — |  |  | $ | 6,036,527 |  |  | $ | 6,036,527 |  |  | $ | — |  |  | $ | 5,227,512 |  |  | $ | 5,227,512 |
Schedule of Securities Financing Transactions | The following table summarizes our secured financings issued in the year ended December 31, 2023 and in the nine months ended September 30, 2024.
Issue |  | Date Issued |  | Total Issued |  | Weighted Average Cost of Funds(1) |  | Weighted Average Life (in years)
(Dollars in thousands) |  |  |  |  |  |  |  |
Private Education Loans: |  |  |  |  |  |
2023-A |  | March 2023 |  | $ | 579,000 |  |  | SOFR plus 1.53% |  | 5.06
2023-C |  | August 2023 |  | 568,000 |  |  | SOFR plus 1.69% |  | 4.93
Total notes issued in 2023 |  | $ | 1,147,000 |  |  |  |  |
Total loan and accrued interest amount securitized at inception in 2023(2) |  | $ | 1,292,507 |  |  |  |  |
2024-C |  | May 2024 |  | $ | 668,000 |  |  | SOFR plus 1.19% |  | 5.36
2024-E |  | August 2024 |  | 868,000 |  |  | SOFR plus 1.42% |  | 5.17
Total notes issued in 2024 |  |  |  | $ | 1,536,000 |  |  |  |  |
Total loan and accrued interest amount securitized at inception in 2024(3) |  | $ | 1,678,289 |  |  |  |  |
(1) Represents SOFR equivalent cost of funds for floating and fixed-rate bonds, excluding issuance costs. (2) At September 30, 2024, $1.11 billion of our Private Education Loans, including $1.02 billion of principal and $85 million in capitalized interest, were encumbered related to these transactions. (3) At September 30, 2024, $1.65 billion of our Private Education Loans, including $1.51 billion of principal and $138 million in capitalized interest, were encumbered related to these transactions.
Schedule of Variable Interest Entities | We consolidate our financing entities that are VIEs as a result of our being the entities’ primary beneficiary. As a result, these financing VIEs are accounted for as secured borrowings.
As of September 30, 2024 (dollars in thousands) |  | Debt Outstanding |  | Carrying Amount of Assets Securing Debt Outstanding
| Short-Term |  | Long-Term |  | Total |  | Loans |  | Restricted Cash |  | Other Assets(1) |  | Total
Secured borrowings: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Private Education Loan term securitizations |  | $ | — |  |  | $ | 5,041,913 |  |  | $ | 5,041,913 |  |  | $ | 6,344,419 |  |  | $ | 170,982 |  |  | $ | 419,945 |  |  | $ | 6,935,346 |
Secured Borrowing Facility |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,636 |  |  | 1,636 |
Total |  | $ | — |  |  | $ | 5,041,913 |  |  | $ | 5,041,913 |  |  | $ | 6,344,419 |  |  | $ | 170,982 |  |  | $ | 421,581 |  |  | $ | 6,936,982 |
As of December 31, 2023 |  | Debt Outstanding |  | Carrying Amount of Assets Securing Debt Outstanding
| Short-Term |  | Long-Term |  | Total |  | Loans |  | Restricted Cash |  | Other Assets(1) |  | Total
Secured borrowings: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Private Education Loan term securitizations |  | $ | — |  |  | $ | 4,235,312 |  |  | $ | 4,235,312 |  |  | $ | 5,539,964 |  |  | $ | 149,412 |  |  | $ | 311,697 |  |  | $ | 6,001,073 |
Secured Borrowing Facility |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,066 |  |  | 1,066 |
Total |  | $ | — |  |  | $ | 4,235,312 |  |  | $ | 4,235,312 |  |  | $ | 5,539,964 |  |  | $ | 149,412 |  |  | $ | 312,763 |  |  | $ | 6,002,139 |
(1) Other assets primarily represent accrued interest receivable. The table below provides a summary of our exposure related to our unconsolidated VIEs.
|  | September 30, 2024 |  | December 31, 2023
(Dollars in thousands) |  | Debt Interests(1) |  | Equity Interests(2) |  | Total Exposure |  | Debt Interests(1) |  | Equity Interests(2) |  | Total Exposure
Private Education Loan term securitizations |  | $ | 591,155 |  |  | $ | 54,840 |  |  | $ | 645,995 |  |  | $ | 423,327 |  |  | $ | 54,481 |  |  | $ | 477,808 |
(1) Vertical risk retention interest classified as available-for-sale investment. (2) Vertical risk retention interest classified as trading investment.

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